The stock market indices crashed on the first day of trading week--November 6 (Moday). The Sensex was down 949.32 points or 1.65 percent at 56,747.14. The broader Nifty was down 284.40 points or 1.65 percent at 16,912.30. About 1,340 shares have advanced, 1,948 shares declined, and 165 shares are unchanged. Bank Nifty fell 1.27 percent.
The 30-stock Sensex erased all gains made since August 31. It fell over 900 points giving up 57,000 levels for the first time since the last trading day of August.
All the Nifty50 stock, except UPL, stocks nosedived with Coal India, IndusInd Bank, Tata Consumer Products, Bajaj Finserv and HCL Technologies were among the top Nifty losers.
Mohit Nigam, Head - PMS, Hem Securities said, the key benchmark indices have extended losses and registered fresh intra-day lows with major weakness witnessed in IT and FMCG stocks. On the economy front, investors would be eyeing the RBI MPC Meeting and data of Index of Industrial Productions (IIP) which is set to be released on December8 and 10. If not for the new omicron variant, economic recovery was on a very strong footing but if this virus quickly spreads in India then we might experience some volatility for the coming few weeks unless development is seen on the vaccine side Nigam said.
"On the technical front, markets are trading around crucial support zone 16,800-850 levels and if it does not sustain above this level then we might see some volatility in the coming days . Immediate support and resistance for Nifty 50 is 16,800 and 17,250 and for Bank Nifty is 35,350 and 36,500 respectively," Nigam added.
here was no respite for the markets as investors continued to dump stocks at will due to uncertainty over the current threat of the omicron variant of coronavirus. Weakness in other Asian markets also further worsened the sentiment.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said, "After last Friday's sharp fall, the Nifty quickly broke the 17,100 support level. The index has formed a long bearish candle and closed below the 17,000 mark which is broadly negative for the market. However, on intraday charts, the market looks extremely oversold and as long as the Nifty doesn't breach the 17,000 intraday breakout level, the weak wave could remain intact. For day traders, the texture is volatile and weak and 17,000 could act as a trend decider level. Below the same, the correction wave will continue up to 16,850-16,800 levels. On the flip side, above 17,000 intraday breakout, a pullback rally could move the index up to 17,085-17,125 levels. Contra traders can take a long bet near 16,800 with a strict 16,750 support stop loss."
